helplessobserver

20 Option Ideas to Protect and Profit: Financials

Very interesting, but why not buy FCS and sell an at the money strangle on FCX out to Jan10. Collect about 8 on the call and 8 on the put. If called you make about 28% in six months. Your down side protection is 15%. You can also use part of the $16 premium collected to buy put protection several points below your break even price. You need 2 puts per position first to protect your first 100 shares and another to protect against an assignment of 100 FCX stock in case of a market meltdown.

U.S. Credit Card Defaults Soar to Record High

It is pretty obvious the banks are running scared of their unsecured credit card lines. It is natural for people to use their last credit line to finance the household when their primary source of funds is exhausted from business slow down or job loss. In the era I grew up in the banks only lent to people who did not need money, others paid loan sharks like Liberty Loans for consumer financing. The grand experiment of every man having a line of credit is over.

Stress Tests: Where Do CDS Fit In?

One thing we must keep in mind is the purpose of banks holding all these CDS's. Regulators allow the upgrade of a loan say from tier II to tier l capital if it is insured by a CDS. European banks began massive CDS purchases, mostly from AIG, when they realized how low the credit value was on US issued CDOs they held as capital reserves. This is why the US taxpayer paid so much money to UK and other European banks. It made the $11 billion Marshall plan outlays look like chump change.

2009's House of Pain: Consumer Loans and Credit Card Debt

The next revenue stream will come from assessing a fee on card holders who pay off their balances each month. We do that and between their accounting and Quickens we keep track of our total household expenditures, less a small amount of cash slippage.

Touchdown: When Do Financial Stocks Hit Zero?

Ira,
If the DJIA banks get nationalized along with other biggies, what happens to the solvent large regional banks like BBT, PNC and Comerica?

thanks,
helpless

Here Comes a Consumer Killer

Before this is all over I expect the card issuers will be putting a fee on even though the creditor pays off the balance each month. A few bucks from each card would add up to a lot of revenue.

Bad Mortgages Are Only the Beginning

McBlue's analysis sheds more light in the fewest words.

Buying Financials Amidst New Institutional Accumulation

There is no suicidal action in investing in BBT bank. Solid well capitalized and no sub-prime toxins. 7% looks pretty good for this investor vs 3% on treasuries.

American Express Scales Back

If I read this post right a major lender is cutting off credit to a high quality borrower because he doesn't carry a balance or is worried if he builds up a balance he won't pay it off. I have never seen this before, but if it spreads to other card issuers and they cut off good customers as well as the deadbeats a lot of buying power will slip away as cumbersome cash transactions move in to fill the void. Not good for online retailers.

These Stocks Are Attractive Amidst This Selloff

Obviously you don't know much about NBR management. They are looting the company and driving it into the ground. Even Cramer has shut up about this sorry company. If CEO Gene Isenberg, one of America's the highest paid, ever leaves the company there may be some hope. Yes buy NBR, then watch DO, NE and RIG enrich their shareholders.